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Megan C
Megan C , Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16538
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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My employer took an extra 2% out of my check today. The account

Resolved Question:

My employer took an extra 2% out of my check today. The account says that due to the fiscal cliff they are entitled to the extra amount. The days worked are 12/16/12 through 12/31/12 the check was cut on 1/2/13.

Is this correct, or can I challenge this?
Submitted: 3 years ago.
Category: Finance
Expert:  Megan C replied 3 years ago.
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

Thank you for your question, and thanks for using JustAnswer.com. Unfortunately, your employer was correct in taking the additional 2% from your paycheck. This is because FICA taxes went up from 4.2% to 6.2% as of yesterday. You pay your payroll taxes based on when you are paid, not when you earned the money. Had your check been issued 12/31/12 then you would have the extra 2%.

You will not pay income tax on this money until 2013, either. It will not be on your W-2 for this year.

Please let me know if you need anything additional. Thanks again for using JustAnswer.com and have a happy, and safe, holiday season.

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You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.

Megan C and 2 other Finance Specialists are ready to help you
Expert:  Megan C replied 3 years ago.
Thank you for the positive rating. Please remember me the next time you have a question. Simply enter "MyVirtualCPA" in the subject of your question, and it will be routed directly to me. Thank you again for using JustAnswer